29 REVIEW ON PERFORMANCE APPRAISAL OF EMPLOYEES
Vishal Verma1, Dr. Neha Mathur2, Dr. Atul Loomba3
1Research Scholar (PhD), Faculty of Management, Rabindranath Tagore University, Raisen, Madhya Pradesh
2Professor & Dean, Faculty of Management, Rabindranath Tagore University, Raisen, Madhya Pradesh
3Associate Professor, Faculty of Management, Rabindranath Tagore University, Raisen, Madhya Pradesh
Abstract- Performance appraisal is a most important to all organizations. Performance appraisal is an official and evaluation of an individual performance and peers will be checking an individual’s performance on a continuous, And Employees are a key element of any organization. The performance appraisal systems developmental tools used to measure the real performance in an organization and the strategic goals of the organization are associated to that individual performance. In this paper I explanation about the factors that affected performance appraisal, and the proposed the deliverable of performance appraisal.
Keywords: Performance Appraisal, Employee Performance, Job Satisfaction, Motivation.
1 INTRODUCTION
Performance appraisal is a very essential component of the overall human resource management system in any organization.
In a manufacturing sector, or service sector, public or private sector, formal and informal sector, interrupted appraisal of employees, serves as a very good HR developmental tools towards improving the performance of the employees and also their overall developmental year after year. It also helps the employees to appraise themselves essentially and plan effective steps towards their work improvement and career development.
And all organization’s aims to at being effective and achieve their goals, in order to do this, it is to measure the performance of the employees on a regular basis. Effective monitoring also includes giving timely feedback. And effective implementation of performance appraisal system with in different organization helps greatly towards individual organization goal integration also important for overall success of organization and its people.
1.1 Performance Appraisal Definition Performance appraisal is the systematic evaluation of the performance of employees and to understand the abilities of person for future growth and development. Performance appraisal is usually followed by the supervisors’
measures the pay of employees and measure up to it with targets and plans,
and analyze the factors following work performance of employees, and the employers are in position to show the employees for a better performance.
1.2 Research Methodology
Secondary data were used in this research. Data was collected from past researches, books, internet and various research papers and articles published in journals.
2 LITERATURE REVIEW
1. Mashavira Nhamo (2020) [49] did study in the title of “The perceived impact of performance appraisal on the performance of small-to- medium-sized enterprises in Zimbabwe”. The objective of this research was to examine whether performance appraisal had an impact on SMEs’ performance measured by return on investment (ROI) and innovation in Harare Province, Zimbabwe. Data was collected using self-constructed structured questionnaire. Data was analyzed using Statistical Package for Social Sciences (SPSS) version 20 for both descriptive and inferential statistics, Cronbach’s alpha, bivariate correlation analysis in the form of Spearman’s correlation coefficient was used to examine the nature and strength of the relationship between performance appraisal and firm performance.
30 Findings showed that most owner or
managers made use of the 360- degree performance appraisal method. The study established that very weak and statistically insignificant relationships existed between performance appraisal and firm performance measured by both ROI and innovation. It was concluded that the 360-degree method was the most popular performance appraisal method amongst owner or managers. It was found out that SMEs performed fairly well in terms of both innovation and ROI. Results from the Spearman’s correlation on performance appraisal versus SME performance showed very weak relationships between performance appraisal and firm performance measured by both ROI and innovation in the SMEs. It was also concluded that there was no statistically significant relationship between performance appraisal and firm performance measured by both ROI and innovation. Future studies should strive to gather longitudinal data involving nation-wide samples in order to validate and enhance the generalizability of findings of the current study.
2. Ibrahim Abbas Umar, Daniel Cross Ogohi (2019) [2] did study in the title of “Impact of Performance Appraisal on Employee Productivity in Nigeria Breweries Plc”. The objective of this study was to examine the effects of performance appraisal on employees’ productivity at Nigeria brewery plc, to ascertain the effect of compensation on employee’s productivity in Nigeria brewery plc, to identify the significant relationship between performance appraisal and employee’s productivity in Nigeria brewery plc. Data was collected using questionnaire. Data was analyzed using Chi square analysis, regression analysis, percentage distribution and Statistical Package for Social Sciences (SPSS). Findings showed that objective and well- planned high performance of employees’ productivity, retraining
and consistent training are to be organized for the people involved in appraisal programme. It was concluded that organizations should evaluate their employees frequently through accomplishments, organizational goals, utilized targets and time management as it would help increase employees’
productivity. Implementation of management by objectives as performance appraisal was statistically important in appraising employee’s performance. The study recommend that organizations should develop and implement performance appraisal methods to help provides opportunities to the organization by recognizing employees training needs, help workers on time management through proper planning, offer poor performers are chance to improve, help employees meet performance objectives, helps managers to make cognizant decisions about assignments and promotions based on appropriate facts and enhance synergies of employees. The research study propose that companies should implement behavioral performance evaluation scheme and management by objectives as the appraisal methods were initiated to be statistically important in swaying employees’
relationship and enhancing employee’s productivity.
3. Carolyn Akinyi Owino, Musa Oluoch, Fredrick Kimemia (2019) [26] did study in the title of
“Influence of Performance Management Systems on Employee Productivity in County Referral Hospitals of Kiambu County”. The objective of this research was to study the influence of performance management system on employee productivity in county referral hospitals of Kiambu County. Data was collected using questionnaire.
Data was analyzed using Multiple Regression analysis and SPSS.
Findings showed that performance appraisal influences employee productivity and this influence is statistically significant, there is a
31 positive and significant influence of
giving feedback to employee productivity in County Referral Hospitals of Kiambu County, rewarding performance influences employee productivity positively and significantly. It was concluded that performance planning influences employee productivity positively and significantly, the study then concludes that giving feedback influences employee productivity significantly. Future studies may replicate this study to other lower tiers of health care system. The study also revealed that planning, appraisal, feedback and reward are not the only factors that contribute to employee productivity. Future studies can look at other factors.
4. Ragila A. Franklin, Malar J. Divya Merry (2019) [28] did study in the title of “Effectiveness and The Benefits Obtained by The Employees After Performance Appraisal”. The objective of this research was to examine the effectiveness and the benefits obtained by the employees by the system of performance appraisal. Data was collected using structured questionnaire. Data was analyzed using multiple regression analysis. Findings showed that the performance appraisal system had benefited the employees in their promotion thus increases the increment. It was concluded that the performance appraisal system is effective and brought positive impact on the employee’s performance.
Performance appraisal system provides feedback about the employees’ performance and helps them to have training and development programs if they lack skill in their work. Most of the employees feel the effectiveness of performance appraisal system and it is bias free. Based on the result of this study, itcan be seen that performance appraisal can be a way to reward good performers. It is also vital that employee development is given more emphasis. This way employee’s knowledge and skills will be enhanced and developed which is
geared towards employee efficiency and excellent performance.
5. Bhatia Vaibhavi A., Patel Ripal (2018) [4] did study in the title of “A Study on Employees’ Satisfaction Towards Performance Appraisal System at Power Generation Company”. The objective of this study was to find out the Employees’
Satisfaction towards Performance Appraisal System. Data was collected using questionnaire survey. Data was analyzed using factor analysis and cross tabulation using SPSS software. Findings showed that both employees’
satisfaction and performance appraisal are interrelated with each other. It was concluded that performance appraisal should satisfy the employees and if the employees dissatisfied with the performance appraisal, then it should be explained to them that why their performance is not proper and counselling is the best way to overcome this problem about the employee’s performance through which it gets clear about the personal and organization goals. The findings would be helpful to find out the factors which contribute to effectiveness of performance management system. Further research also needed to be done to find out the importance of training, the employees’ involvement in performance Appraisal process such as goal setting and objectives setting.
6. Ehsan Hanaan (2018) [5] did study in the title of “Impact of Performance Appraisal, Work Design and Compensation on Employee Performance: A Study of Telecom Sector”. The objective of this study was to find out the impact of human resources management practices on employee performance in the telecom sector of Pakistan, to assess the impact of human resources management practices (performance appraisal, compensation and work design) on employees’ job performance with particular reference to telecom sector of Pakistan in Islamabad/Rawalpindi.
32 Data was collected using survey
questionnaire, Mobilink, Zong, Telenor and Ufone. Data was analyzed using Cronbach alpha, correlation, regression, reliability analysis using SPSS Software.
Findings showed that the
performance appraisal,
compensation and work design, have positive impact on employee performance. It was concluded that human resources practices have an impact on employee performance so organizations need to improve their human resources practices for improving employee performance.
The results could be more reliable if problem of limited time and resources might not restrain the researcher. The second limitation is that, only targeting at one sector i.e., for telecom sectors of one cities of Pakistan only, so the generalizability of the results is low as the sample size is taken very small.
7. Aarathy T.S, Raju D. Venkatarama (2018) [29] did study in the title of
“Employee Perception Towards Performance Appraisal System in IT Sector”. The objective of this research was to determine the perception of employees towards performance appraisal system. Data was collected with the help of questionnaires using convenience sampling method. Findings showed that performance appraisal increases quality and quantity of work. It is very effective and useful to reduce problems, anger, stress and grievances of employees to overcome their problems. It was concluded that Performance appraisal improves the overall performance of the employees. It increases quality and quantity of work. It is very effective and useful to reduce problems, stress, anger and grievances of employees to overcome their problems. It was observed from the study that progress reviews were information about the level of achievement and behavior of subordinate. It also identifies individuals with high potential who can be groomed for higher positions.
8. Kumar N. Prasanna, Boddeda Narendra (2018) [30] did study in the title of “ Performance Appraisal Practices in IT Industry (A Comparative Study between selected IT Companies in Visakhapatnam, AP.)”. The objective of this research was to examine the prevailing performance appraisal practices in selected IT Organizations, to combatively assess the satisfaction level of employees in both the IT Organizations, to offer better suggestions to improve performance appraisal practices in selected IT organizations, to measure the satisfaction level of the employees regarding performance appraisal practices and to compare the performance appraisal practices in select IT organizations in Visakhapatnam district in Andhra Pradesh. Data was collected using field survey with the help of a structured questionnaire with closed end questions. Data was analyzed using t-test, comparative analysis.
Findings showed that IBM Kenexa employees are more satisfied than miracle software solutions with regard to the comparison analysis it evidenced from the analysis that there is a significant difference between the performance appraisal practices in both the organizations.
It was concluded that standards of performance Appraisal systems has been practicing at IBM Kenexa, but there are still required to manipulate certain practices. Whereas in miracle software solutions practicing old techniques of performance appraisal practices which does not completely satisfying the employee.
Hence; it requires some modification to be implemented for employee development as well as organizational development.
9. Sajuyigbe, Ademola S. (2017) [6] did study in the title of “Impact of Performance Appraisal on Employee Performance in Nigerian Telecommunication Industry (A study of MTN, Nigeria)”. The objective of this research was to determine the level of awareness of existence of performance appraisal
33 in MTN Nigeria, to assess the impact
of performance appraisal on employee’s performance, to identify the problems to effective performance appraisal system in MTN Nigeria. Data was collected using structured closed ended questionnaire. Data were analyzed using Frequency, Percentage, Mean, Standard Deviation and Linear Regression. Findings showed that inability to provide on time feedback, lack of objectivity during appraisal, favoritism and bias of the supervisors, non-rewarding of hard work or overtime, not strict with the appraisal outcome, and lack of continuous documentation are major short comings of performance appraisal system in MTN, Nigeria. It was concluded that the level of performance appraisal awareness is high among the staff and the performance appraisal system plays a very vital role in contributing to high performance of employees in MTN, Nigeria.
10. Monisha Gaba (2017) [8] did study in the title of “An analytical study of Performance Appraisal System in Contemporary Organization”. The objective of this research was to critically examine the concept of Performance Management, to identify the objectives of Performance Management, to analyze the effective process of Performance Management, to establish Critical Success Factors of Performance appraisal System. Data was collected using interviews, questionnaires, observations.
Findings showed that there are two main reasons for the appraisal process. The first is the control purpose, which means making decisions about pay, promotions and careers. The second is about identifying the development needs of individuals. After going through the study, we may conclude that an appraisal is the analysis of the performance of an individual, which usually includes assessment of the individual’s current and past work performance.
3 CONCEPTUAL FRAMEWORK
This is the conceptual framework for performance appraisal. This framework contains the selected variables: employee performance, employee satisfaction, motivation, training and development and welfare facilities which are chosen from the review of literature and the articles referred.
A. Employee Performance
Employee performance is defined as where a person executes their duties and responsibilities of a job well. High employee’s performances lead a developed organization and have greater opportunities for employees then those who have low performance (Vans cotter, 2000).
B. Employee Satisfaction
Through the performance appraisal, they can evaluate the employee job satisfaction in the organization. By rating or grade they could evaluate their performance and assessing their concentration, involvement of work and then regarded that all those factors they can find their level of job satisfaction.
C. Motivation
Motivation is the factor which is more influencing the employee’s performance in the organization. Motivations are considered that both monetary and non- monetary way. It will give the greater impact on employees’ performance to the organization. In the way of performance appraisal, they can know the level of motivation factor which was implemented by the organization and the positive changes arise from the motivation factor.
34 D. Training and Development
Training and development are concerned with HR function it gives the better performance to the organization. The managers analyze the performance of the employees and gives the training based on their ability to improve their job performance in better way. So, performance appraisal is very important to provide effective training to develop both the employee and organization.
E. Welfare Facilities
Welfare facilities are necessary for the employees to do their work effectively in the organization. Welfare facilities that are provided in the organization such as Drinking water, food, first aid facilities, Rest room facilities, leave, travel facilities, free loans, Rewards and promotions, etc.., these are all the welfare that has to provide compulsory by the organization.
Then only the performance of the employee will be increased fairly.
The expected deliverables are:
Reduced stress, refined work, and good organization environment, more attention to reach the organization goal and organization growth increase.
3.1 Objectives of the Study:
1. To perform a review of literature on the subject matter- Performance Appraisal.
2. To know the benefits of implementing Performance Appraisals in an organization.
4 CONCLUSION
This paper concludes that the performance appraisal is very necessary to the organization. The success and failure of the organization process depends on the performance of the employees. When the organization analyze the performance of the employees continually then it gives the best exposure to the employees as well as organization.
In future study, the empirical research will be conducted by the performance appraisal of the employees.
REFERENCES
1. Ibrahim Abbas Umar, Daniel Cross Ogohi (2019), “Effect of Performance Appraisal on Employee Performance in Nigeria Breweries Plc”, Vol 7 Issue 5, pp. 206-211.
2. Mashavira Nhamo (2020), “The perceived effect of performance evaluation on the productivity of small-to-medium-sized organizations in Zimbabwe”, pp. 1-18.
3. Carolyn Akinyi Owino, Musa Oluoch, Fredrick Kimemia (2019), “Impact of Performance Appraisal Systems on Employee performance in County Referral Hospitals of Kiambu County”, Vol. 9 No. 3, pp. 1320-1336, Human Resource Management Academic Research Society.
4. Bhatia Vaibhavi A., Patel Ripal (2018), “A Study on Workers Satisfaction Towards Performance Management System at Power Generation Company”, Volume 5, Issue 6, pp.
577-582.
5. Ehsan Hanaan (2018), “Effect of Performance Evaluation, Work Design and Compensation on Employee’s productivity: A Study of Telecom Sector”, Volume 6 Issue 3, pp. 1-9.
6. Ragila A. Franklin, Malar J. Divya Merry (2019), “Efficacy and theadvantages Obtained by the workers After Performance Appraisal”, Volume 6 I Issue 1, pp. 691-695.
7. Aarathy T.S, Raju D. Venkatarama (2018),
“Employee Perception Towards Performance Management System in IT Sector”, Volume 9 Issue 5, pp. 131-135, IAEME Publication.
8. Kumar N.Prasanna, Boddeda Narendra (2018),
“Performance Appraisal Practices in IT Industry (A Comparative Study between selected IT Companies in Visakhapatnam, AP.)”, Volume 6, Issue 1, pp. 905-912.
9. Sajuyigbe, Ademola S. (2017), “Effect of Performance Appraisal on Employee productivity in Nigerian Telecommunication Industry (A study of MTN, Nigeria)”, Vol. 3 No.
1, pp. 80-90, IIARD publications.
10. Monisha Gaba (2017), “An analytical study of Performance Management System in Contemporary Organization”, Volume 7 Number 1, pp. 50-64, Research India Publications.
WEBOGRAPHY
1. 30th July 2021, 3:45 pm,
https://www.td.org/insights/why- performance-improvement-is-essential 2. 12th July 2021, 5:40 pm,
3. https://kissflow.com/hr/performance- management/employee-performance- appraisal-method/
4. 12th July 2021, 5:40 pm,
https://www.hrhelpboard.com/performance- management/performance-appraisal-its- purpose.html.
5. 9th July 2021, 10:30 am,
https://www.investopedia.com/what-is-a- performance-appraisal-4586834
6. 9th July 2021, 11:35 am,
https://www.managementstudyguide.com/pe rformance-appraisal.htm
7. 9th July 2021, 1:22 pm,
https://en.wikipedia.org/wiki/Performance_a ppraisal
8. 30th July 2021, 3:20 pm,
https://en.wikipedia.org/wiki/Performance_i mprovement
